Speaking to reporters during a visit to Slavonski Brod on Wednesday, Bauk did not specify the scope of labour cuts in individual ministries, noting that it was up to the ministries to decide.

The minister does not think that the announced labour cuts are drastic considering the overall number of 250,000 employees in the state administration and public services.

The 10,000 people to be affected by the planned cuts include 5,000 who meet conditions for retirement, Bauk said.

Asked if this year new administration staff would be hired, Bauk said it would but "under very restrictive conditions."

More significant employment in the state administration could be expected only in 2013, he added.

The reduction of the administration staff is already under way, he said, adding that since the start of the term of the new government, the number of employees in government ministries had been reduced by 400.

"Some of the employees met retirement conditions, and there has been no new hiring. That creates the possibility of new hiring, but only in exceptional cases," he stressed.

Answering reporters' questions, the minister said the government's platform did not include plans to reduce the number of local self-government units.

"The 2013 (local) elections will be held with the existing system of towns and municipalities," Bauk said, adding that there would be a broad public debate about changes to the country's territorial organisation and that municipalities would not be abolished but be given appropriate powers.

"The problem are not small municipalities, but those that live beyond their means. That is why municipalities should not be abolished, but the system of their funding should be changed."

Asked if voters' lists would be put in order before the local elections, Bauk said that he had received assurances from the Ministry of the Interior that they would and that based on the new law on permanent residence, all people who did not live in Croatia would be removed from the voters' lists.